KUALA LUMPUR (Feb 25): Department store and mall operator AEON Co (M) Bhd’s (KL:AEON) net profit declined 26.3% to RM24 million in the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM32.6 million a year ago, dragged down by one-off accrual for litigation claims and interests amounting to RM22.6 million.

Normalising the one-off cost, AEON said its profit before tax would have been 19.1% higher at RM64.1 million compared with RM53.8 million in 4QFY2023.

During the quarter under review, quarterly revenue rose 3.6% to RM1.07 billion from RM1.03 billion in 4QFY2023, as its retail business and property management services both grew 3% and 6.2% respectively.

The group proposed a final dividend of 4.5 sen per share for FY2024, higher than the four sen per share in FY2023.

For the full year of FY2024, AEON Co’s net profit increased by 11.5% to RM128 million from RM114.83 million. Revenue rose 3.2% to RM4.26 billion from RM4.13 billion in the previous year.

Specifically, its retail segment’s revenue grew 2% to RM3.52 billion supported by higher customer spending, while its property management services revenue rose 9.2% to RM737 million, underpinned by improved occupancy rates and effective rental renewals.

As of December 2024, the group was operating 35 AEON stores and 10 specialty stores including three AEON Wellness, six DAISO and its very first Tsutaya Bookstore in AEON Tebrau City. It completed all mall and store renovation projects earmarked for FY2024.

In terms of prospects, AEON said it is committed to strengthening the AEON Living Zone ecosystem to enhance its customer loyalty programme.

It also aims to drive growth by prioritising the expansion of its customer base, increasing foot traffic to AEON stores and malls, and accelerating sustainability initiatives.

“These efforts will be supported by product innovation and technology development to deliver a more seamless and enjoyable shopping experience,” it said.

With festive-filled months to kick start FY2025, AEON said it welcomes customers with attractive promotions, diverse product assortments as well as engaging events and activities.

The group also plans to broaden its retail product assortments, especially its private brands as well as upgrade its existing malls and stores.

“These will include better tenant management through effective tenancy renewals and optimising tenant mix to ensure continued success of the property management services business,” it added.

Shares of AEON were one sen or 0.7% lower at RM1.42 at Tuesday’s closing, valuing the group at RM1.99 billion. Year to date, the stock has fallen by 9.6%.